-Market research company GfK
A closely watched gauge of consumer spending, inched higher to 8.9 points in July from a revised 8.6 a month earlier. This is the highest level since December 2006, suggesting improvement in consumers' mood was led by rising real wages and a stable labour market. Nevertheless, Gfk company warned that an escalation in tension in Iraq and Ukraine are expected to dampen sentiment both among households and businesses. Earlier in June the ECB rolled out an unprecedented stimulus package by entering uncharted territory and bringing interest rates to the negative zone and expanding its loan programmes.
On the back of strong fundamentals from Europe and sluggish performance of the world's largest economy in the first quarter, the most traded currency pair rocketed to weekly R1 and daily R2 at 1.3652, putting the 200-day SMA at 1.3685 on the map.
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